Indonesia’s Shift to Induction Cooking Could Ease LPG Subsidy Costs While Improving Health and Energy Security—New Report

Jakarta, December 18, 2025 — Indonesia could save up to IDR 12 trillion a year, cut reliance on imported fuel, improve public health, and unlock long-term savings by accelerating a shift from subsidized liquefied petroleum gas (LPG) to electric induction cooking.

A new study by the International Institute for Sustainable Development, in collaboration with the National Research and Innovation Agency (BRIN), Indonesia’s Next Cooking Transition: Shifting to Non-Fossil Cooking, looks at how Indonesia can move away from LPG for cooking. It compares three alternatives—induction stoves, dimethyl ether (DME), and city gas—and finds that induction stoves are the most practical and viable option to support Indonesia’s shift to cleaner, non-fossil cooking.

“Induction cooktops provide a credible low-emission pathway for clean cooking in Indonesia, especially as the electricity system continues to decarbonize. As the electricity grid becomes cleaner, emissions from induction cooktops will naturally decline over time. In contrast, alternatives like DME lock households into fossil fuel use and impose subsidy burdens. The challenges with city gas stem from the burning of fossil fuels in the kitchen, the provision of long-lived infrastructure that risks being expensive and inflexible, and the burden of gas supply uncertainty,” said Maxensius Tri Sambodo, senior researcher at BRIN.

The report draws findings from focus group discussions, in-depth interviews, and household surveys in areas with direct experience in alternative cooking technologies, including induction pilot sites in Bali and Surakarta, and city gas users across urban locations. DME was assessed using only secondary data, reflecting on its limited real-world deployment.

Turning Subsidy Reform Into a Win–Win

Indonesia currently provides households 3-kg subsidized LPG cylinders. These subsidies cost the government trillions each year, with much of the financial support flowing to households that do not need it. The report shows that better targeting of the LPG subsidies and support for induction cooking among higher-income households could

• save IDR 7 trillion–IDR 12 trillion per year in public spending,
• reach fiscal breakeven within 3–5 years, and
• create new fiscal space to expand clean-cooking solutions for rural and remote communities.

The study points to smarter reallocation, which will protect low-income households while investing in long-term, resilient solutions.

The report notes that while LPG has helped Indonesia rapidly expand access to clean cooking, with nearly 84% of households continuing to rely on it, this success has come with growing fiscal and energy security pressures.

In 2023, LPG demand reached 8 million tonnes, but domestic production was only 2 million tonnes. This mismatch between domestic demand and production has caused an import bill of IDR 74 trillion (USD 4.8 billion), putting pressure on the government’s budget and underscoring the urgent need for a cleaner cooking alternative.

Induction Cooking: A practical opportunity for millions of households

The report finds that electric induction cooking is the most practical non-fossil cooking option for households connected to the grid—and one that delivers benefits quickly. For many families, induction cooking is already cheaper, safer, and easier than using unsubsidized LPG. 

Households in pilot programs reported cleaner kitchens, simpler cooking, and noticeable monthly savings when LPG usage fell. Importantly, investing in electricity upgrades to support induction cooking will also strengthen Indonesia’s broader energy transition goals, powering cooling, electric vehicles, rooftop solar, and home batteries. By combining electrification with renewable energy, Indonesia can move closer to its decarbonization goals.

“This is not just about changing stoves—it’s about modernizing how households access energy, while freeing up public funds to reach those who need support the most,” said Anissa Suharsono, energy policy associate at IISD.

Barriers vs. What Must Change to Unlock Induction Cooking Adoption

Media contact:

Anissa Suharsono, associate, energy policy, IISD, [email protected]  
Maxensius Tri Sambodo, senior researcher, BRIN, [email protected] 
Madhulika Verma, senior communications officer, IISD, [email protected]

About BRIN

Badan Riset dan Inovasi Nasiona (BRIN) is Indonesia’s national research and innovation agency, reporting directly to the President. It was created to integrate and coordinate all government research and development after merging former agencies like LIPI, BPPT, BATAN, and LAPAN. BRIN conducts and manages research across science and technology to support national development and policy needs.